We have plans to establish distributors network
at carefully selected locations in China for distribution
of our products.
Our distributors shall be independent third parties
with established sales and distribution networks
who could pass our vetting process. We select our
distributors based on the extent of their distribution
networks, reputation, personnel, financial standing,
credit worthiness and synergy with our business
strategies.
We will sell our products to distributors at a
fixed price and the distributors re-sell those products
to their market at a price with reference to our
pricing guideline. We will recognize revenue upon
delivery of our products to the distributors, at
which time title passes to the distributors. We
will construe distribution agreements that allow
the distributor to sell our architecutural products
with an agreed annual target as well as products
of other manufacturers in their designated distribution
areas.